“Many central banks across emerging markets have been forced to raise interest rates over the past few months to tackle inflationary pressures fuelled by depreciation of national currencies,” Rabobank analysts note.
Key quotes
“Argentina is the most extreme example as the main policy rate increased to simply staggering 60% after the Argentina peso collapsed to yet another record low extending its year-to-date losses to more than 50%.”
“In Asia, Bank Indonesia surprised the market with a 25bps hike to 5.50% in the middle of August “to maintain the attractiveness of domestic financial markets.”
“The Philippine central bank tightened its monetary policy by 50bps to 4.00% after the peso plunged to the lowest level in 12 years against the US dollar.”
“The Reserve Bank of India responded to growing inflationary risks with the back-to-back rate increase in June and August, which was the worst month for the rupee in three years.”
“A sharp acceleration in inflation and producer prices has set the stage for Turkey’s central bank to hike on September 13.”
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